If the BJP is willing to take on its detractors who will pounce on it as being pro-rich the moment any legislation in brought in ParliamentIndia Inc is hoping this will be as soon as the budget sessionthere are obvious solutions. One is to set up a panel under either a well-known tax expert, or perhaps a retired Supreme Court judge, and get this to look at the rights and wrongs of each case, and then take a call based on this. Another is to refer the matter to the Supreme Court with a larger benchlarger than the one that heard the original Vodafone case which rejected the taxmans argumentsand to request the Chief Justice of India for an early conclusion of the case.
A safer solution is allow the cases to go to international arbitration. So far, in most of the cases that have come up before the government, whether Vodafone or Nokia, the governments first response has been to deny that the case can be taken up for arbitration under various bilateral investment treaties with different countries. In various other cases, such as the one with Reliance Industries Limited, the government has dragged its feet to ensure it took 29 months to even allow the arbitrators to be appointed. If the government, however, is to accept the Vodafone and Nokia notices and allow the case to be heard internationally, this would not only pacify investors, it would give the government the necessary room to take action. If the case went against the government, this can be used as a precedent to settle other cases as well.